On Wednesday 27 July 2016 Premier Jay Weatherill visited
Kangaroo Island to participate in Settlement Day proceedings and present the
2016 Young Achiever Award. This day marked 180 years since South Australia was
first colonised.

The Premier also launched the Transformation Project
Business Support Services at a community information session attended by 120
islanders. The Transformation Project will provide business support services
across the following industry groups:

Tourism
and Hospitality;

Agriculture
and Food Production;

Construction,
Transport and Logistics;

Retail
and Services; and

Beverages.

The Premier announced a total of $188,000 of State
Government support for the Transformation Project stating that “Kangaroo Island
is facing a unique opportunity for growth and it’s critical that businesses and
prospective businesses are well placed to benefit and grow the local economy”.

Transformation Project

Since the Transformation Project was launched, 50 businesses
have registered to participate in the program. Those involved have completed an
industry-specific assessment tool followed by one-on-one interviews with
industry experts to identify how their businesses could prepare and benefit
from growth on the island.

Kangaroo Island Beverages Project update

The Transformation Project includes a business development
program for some of Kangaroo Island’s beverage producers. Nine businesses have
signed up to be involved in the project, with two additional businesses
expected to join in the coming months.

Businesses include:

Bay of
Shoals Winery

The
Drunken Drone

Dudley
Wines

False
Cape

Hazyblur
Wines

Islander
Estate Vineyard

Kangaroo
Island Brewery

Kangaroo
Island Cider

KI
Spirits

Island
Pure

The Stoke
Wines

Businesses will receive mentoring from an industry expert
and undertake a training program to support business development.

As part of this project participants will showcase their
premium products to licensed premises on the island on Thursday 13 October.
Licensed premises will have the opportunity to learn about the products and
meet these passionate producers.

Kangaroo Island’s beverage producers will also have the
opportunity to showcase their range of beverages to retailers operating in the
Adelaide CBD on Wednesday 26 October. This event will be launched by the Hon
Leon Bignell MP, Minister for Agriculture, Food and Fisheries and the
Commissioner for Kangaroo Island, Wendy Campana.

Airport Upgrade Pilot

The Airport Upgrade Pilot was an initial stage of the
Transformation Project, which sought to support business readiness for those
involved in the construction industry on Kangaroo Island. Support services were
delivered to 10 KI businesses to enhance their ability to tender for work to
arise from the Kangaroo Island Airport Upgrade.

This pilot project produced some positive results for
businesses involved, including:

2
Business owners put through Recognition of prior learning (RPL) process to
increase Building License qualification

1
Business owner has secured a Building Supervisors Licence

13
Business owners and staff completed Department of State Development and TAFE SA
2 day Tender Ready workshop

The approach used in this pilot has been adapted so that it
can be extended to other industry groups for developments that will to begin in
the next three to five years.

Open All Year

The Hon Leon Bignell MP launched the Open All Year Digital
Portal on 7 September 2016. Open All Year seeks to improve visitation to
Kangaroo Island throughout the year to increase economic activity on the island
during the ‘off season’.

Register to access the digital portal, access factsheets or
find out more about the project on the seasonal Kangaroo Island website.

Update on Kangaroo Island Developments

Kangaroo Island Airport Upgrade

The Kangaroo Island Airport Upgrade is set to begin work
later this year, with the project expected to be completed by October 2017.

Kangaroo Island Council will call for an Airside Tender, and
Terminal Expression of Interest in the coming week. For more information see
the KI Council’s website.

Wilderness Trail to open in October

The Kangaroo Island Wilderness Trail will be opened by
Premier Jay Weatherill on Thursday 13 October. Bookings are now open for the 61
kilometre five-day trek. The walk tours alongside the spectacular coastline of
the Southern Ocean. For more information on the trail and to book your place
visit the KI Wilderness Trail website.

Kingscote Wharf Revitalisation

Bickfords’ Unsolicited Proposal

A proposal by Bickford’s Australia to develop a visitor and
function centre together with a microbrewery and distillery at Kingscote Wharf
is currently being assessed under the State Government’s Unsolicited Proposal
framework.

Public consultation on the proposal closed on Friday 8 July.
The Department of Environment, Water and Natural Resources was pleased with the
level of engagement during the consultation process and the number of responses
received. View feedback on the proposal on the yourSAy website.

Feedback will be provided to the Coordinator General’s
assessment panel to determine if the proposal will progress to Stage 3 of the
framework.

Registrations of Interest for acquisition of Kingscote Wharf
Land

Registrations of interest were sought for investors looking
to acquire the balance of the land on the Kingscote Wharf. Registrations of
Interest were available for a period of 10 weeks from the 27 June 2016.

Those who registered their interest will be notified of the
outcome by the end of October, and the outcome will be made publicly available
soon thereafter.

American River Resort

The developer continues to put together their application
and it is anticipated that this will go to public consultation in mid October.
Find out more about the assessment stages here.

Kangaroo Island Golf Course Resort

Developers have marked out the proposed course and are
progressing detail design for the water pipeline with SA Water and planning for
other key infrastructure. Once complete, construction scheduling will commence.
Water infrastructure is an obvious priority over and above any other. Find out
more about the assessment stages here.

3 Year Strategic Plan for Agriculture on Kangaroo Island

The Commissioner for Kangaroo Island in association with
Agriculture Kangaroo Island (AgKI) is in the process of developing a three year
strategic plan for agriculture on KI. The strategy seeks to maximise
opportunities for agribusinesses on the Island and identify key priorities for
the industry.

A workshop was held on Thursday 1 September and was attended
by almost 50 representatives from KI's agriculture industry. Attendees had the
opportunity to comment on the draft strategy, which will be finalised in
consultation with AgKI.

The strategy will be made publicly available on our website
in coming months.

Local Advisory Boards

Housing

Part 3 of the Act allows the Commissioner to establish Local
Advisory Boards. The Local Advisory Board for Housing was established in June
2016 and has since met twice.

The Board is currently providing advice to the Commissioner
on the Draft Management Plan for Housing on Kangaroo Island. The Commissioner
will consider this advice and if appropriate, amend the draft plan before it
becomes an expression of policy. Find out more about the Board here.

Economic Growth

The Commissioner is charged with assisting in the
development of KI’s local economy. To support this function, the Commissioner
will establish a Local Advisory Board for Economic Growth. Board membership
will comprise representation from the Council, key bodies, associations, and
State Government agencies relevant to KI’s economic development. Nominations
have been sought from members of the public for up to two positions on the
Board.

The Commissioner has consulted with the Kangaroo Island
Council Local Advisory Board Consultation Panel on the appointments and these
will be confirmed in the next few weeks. To view the Terms of Reference for
this Board and to view the membership when it is finalised, visit our website.

Native Vegetation

The Commissioner will establish a Local Advisory Board for
Native Vegetation Management, to advise on issues relating to native vegetation
on the island. Representation will be sought from relevant Government agencies,
boards and committees with a position for one member of the public. The
Commissioner will consult with the Kangaroo Island Council Local Advisory Board
Consultation Panel in October on appointments to the Board, which will
subsequently be made available on the website.

To view the Terms of Reference for this Board
and to view the membership when it is finalised, visit our website.

Draft Management Plan for Housing on Kangaroo Island

The public consultation period on the Draft Management Plan
for Housing concluded on 15 July 2016. The Commissioner for Kangaroo Island is
currently seeking feedback on the draft plan from the Local Advisory Board for
Housing on Kangaroo Island.

Should the Commissioner adopt any proposals to amend the Draft
Management Plan, then further consultation will need to take place with
prescribed bodies, the Local Advisory Board, the KI Council and relevant
Ministers in accordance with Part 4 of the Commissioner for Kangaroo Island
Act.

The current draft plan is available on the OCKI website.
Should the plan be amended subsequent drafts will also be made publicly
available on the website.

Media Position for Promotion of Kangaroo Island

Barbara Sibley has been engaged to provide media, marketing
and public relations advice to the Office of the Commissioner for Kangaroo
Island and businesses on the island.

Barbara has been in the role for almost four months and has
made valuable contributions in promoting the island, its people, products and
experiences. Particularly, Barbara has worked closely on the Transformation
Project and with the Beverage Industry Group, who will soon be showcasing
products to retailers on both the island and mainland.

If you have good news story that promotes the achievements
of individuals or businesses on Kangaroo Island, please contact the Office of
the Commissioner for Kangaroo Island.

Tourism Champion

We congratulate Sea Dragon Lodge which has been celebrated
as one of SA’s Tourism Champions by the South Australian Tourism Commission.
Find out more here.

Jamie Heinrich wins 2017 Nuffield Australia Scholarship

Jamie Nuffield from Parndana has received a 2017 Nuffield
Australia Scholarship. This scholarship will allow Jamie to investigate the key
factors needed to attract and retain young people in the sheep industry.

Jamie will travel across the globe to undertake this
research, visiting the United Kingdom, New Zealand, China, the United States,
the European Union and South America.